The most important and also the most exciting part of building a solid investment portfolio is to consistently add new investments to the portfolio, for example in the form of investments in real estate or REITs.
Every time I am trying a new real estate crowdfunding platform, I am posting this short report like this. Inside this report, you will find what I actually bought, an overview of the financials of the investment, and finally what this new purchase added to my annual income. I especially love this report as this is the first investment I made in Spain via the Housers platform.
These reports are here to show you how I reason before making an investment, but also to give you the motivation to do the same and start building your property empire.
Recently, I invested a total of 500 Euros in a in two bedroom apartment in Barcelona, Spain.
The Housers Platform
Before we dive into the investment itself, I want to spend some time to introduce the Housers platform, which I discovered via my friend Jean Galea who is living in Barcelona. This was the first Spanish real estate crowdfunding platform that I found which had a lot of deals available, was available for investors outside of Spain, and also was available in English. I actually discovered the platform at the start of 2017, but because of administrative aspects I had to wait till now to actually be able to invest as a non-resident of Spain.
The platform is really well done, with a lot of opportunities to invest in Spain (and actually recently in Italy as well):
As you can see, there are a lot of different type of deals available on the platform, including short-term loans with fixed interest for renovation, new project developments, and buy-to-let opportunities. As a passive income investor, I will of course focus on buy-to-let opportunities (with monthly rent + capital gain), and this is exactly what I chose for this first deal in Barcelona that was available when I started to invest on the platform:
As you can see, each opportunity is very detailed on the platform, with a lot of information about the piece of real estate itself & about the financials of the deal.
Description of the Property
The property that I chose for my first investment on the platform is a two bedroom flat located right in the heart of the city. I know Barcelona myself as I've been many times, and I know it's a booming city, so I was very confident investing in this apartment. Here is a render of the flat after the renovation that will be done by Housers:
This picture shows an overview of the apartment:
Let’s now have a look at the financials for this property. The total amount required for the investment 319,000 Euros, which includes funds for the renovation as seen on the pictures above. For sure this illustrates here the power of real estate crowdfunding - even if I had this amount, it will be very difficult for me to actually buy this property & manage it remotely. Here, I can take part in this deal with a couple of clicks.
The property yields at 3.71%, which is pretty low compared to other real estate crowdfunding investments I have in my portfolio, but in a city like Barcelona that's compensated by the expected annual capital gain, which is announced at 16.57% by the platform. I will definitely focus more on higher-yielding deals on Housers in the future, but for now I really wanted to diversify my investments in Spain.
This purchase will add 18.56 Euros to my yearly income, based on the expected yield. So far I am pretty excited about the Housers platform, and will definitely look for more deals to invest in on this platform. I'll of course post a new report every time I invest in a new deal there, and also keep you posted about the evolution of this first deal!